Hawaii gets failing grade for transparency in government spending

Hawaii is failing compared to other states when it comes to transparency in government spending, according to a report card issued by the U.S. PIRG Education Fund. The state dropped from a “C” grade to an “F” this year.

State governments nationwide have been launching transparency websites in recent years that reveal where government spending is going, but this year marks the first year that all 50 states are providing some “checkbook-level” information on state spending online — now searchable in 48 of those states. Three years ago, only 32 states were at that level, with 29 states providing it in “searchable form.”

Phineas Baxandall, senior analyst for tax and budget policy with the fund, said that a website in “searchable form” refers to the ability to easily search the website’s data.

Despite progress, Hawaii is one of five states with the lowest ranking.

Hawaii has data in searchable form for contracts and grants, but not for its economic-development tax credits or other expenditures, according to Keone Kali, deputy chief information officer for the state of Hawaii.

"We don't currently report [in those areas] because of our aged infrastructure," he said.

And that is what lowered the state's score in the PIRG report.

“State governments across the country have become more transparent about where public money goes, providing citizens with the information they need to hold elected officials and businesses that receive public funds accountable,” said Baxandall. “But Hawaii still has a long way to go.”

Hawaii is cited as failing because of limited information, difficulty navigating, and a lack of helpful links. Plus, standards are continually rising each year, which means Hawaii, and other states, must keep up with changes to improve or keep their ranking.

Help could be on the way for Hawaii, Kali said. In the budget currently being considered by state lawmakers, $24 million is being allocated for a computerized data system that would modernize and replace 126 current systems.

And that kind of improvement would likely raise the state's standing with PIRG.

“Hawaii’s falling score does not mean spending has become less transparent. It means most states are improving faster,” Baxandall said.

States with the most transparent spending provide comprehensive information, including data on economic development subsidies, expenditures granted through the tax code and quasi-pubic agencies. For a website to be worthy of an “A” when it comes to transparency, it should be searchable, engaging and have plenty of detailed information, according to the U.S. PIRG Education Fund.

In the report, several states were able to update their website from within existing budgets. Hawaii, though lagging, is one of those states listed as starting up and operating the transparency site within the state’s existing budget. Other states have invested thousands of dollars in the process.

“The improvement of the state’s transparency website should be a priority in order to shine a light on Hawaii’s government spending,” Baxandall said in a statement. “Given the state’s difficult budget choices, [Hawaii residents] need to be able to follow the money.”